"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat


Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput

Trader Dan's Work is NOW AVAILABLE AT WWW.TRADERDAN.NET



Wednesday, August 1, 2012

New Slogan - Ban the Machines

To add to the plethora of bumper stickers promoting nearly every cause in the universe, "Hug a Tree", "Save the Whales", "Think Green" and my favorite "Dads Against Daughters Dating - DADD", maybe we can all add this one: "Ban the Machines".

I am of course referring to the near biblical plague on the financial markets otherwise known as the High Frequency Trading Algorithms.

There is no redeeming value whatsoever in these things - none.

Knight Capital Trading Glitches Strike Wall Street


Wall Street was hit by a messy opening on Wednesday due to technology glitches at Knight Capital Group (KCG: 7.99, -2.34, -22.65%), causing confusion and shares of the market maker to plunge more than 20%.
The Securities and Exchange Commission is talking to the New York Stock Exchange over erroneous Knight Capital trades, sources told FOX Business's Charles Gasparino. The SEC and NYSE are examining possible algorithm mishaps and looking into a possible “fat finger” trading error, while Knight told Gasparino it is looking into the trading problems.


Read more: http://www.foxbusiness.com/investing/2012/08/01/nyse-reviews-early-morning-trades/#ixzz22JezZAj3
 
Posted by at

4 comments:

  1. Kid DynamiteAugust 1, 2012 at 10:46 AM

    Dan,
    I just wanted to refer you to a post I just wrote about today's action:

    http://kiddynamitesworld.com/dear-knight-thank-you-dear-themis-relax/

    no reason to be upset about it. It did two things: 1) provide a great opportunity for everyone, and 2) show some serious robustness in the market.

    best,
    KD

    ReplyDelete
  2. MDLGTOAugust 1, 2012 at 12:32 PM

    Just disgusting on so many levels--I think it's especially meretricious that they call it a "fat finger" when the algorithm probably just worked too well...

    The other levels: HFT / manipulation of gold shares, esp over the past six months and the "good" manipulation of propping up the indexes last 10 min every day.

    ReplyDelete
  3. NickAugust 1, 2012 at 1:37 PM

    The NYSE is starting to cancel the trades.
    So much for robust markets.

    ReplyDelete
  4. profit.bizAugust 3, 2012 at 1:21 AM

    The market is dropping, what else should i have todo to save my money.

    MCX Tips
    Commodities Tips

    ReplyDelete

Note: Only a member of this blog may post a comment.

Subscribe to: Post Comments (Atom)